Indonesia'S Footwear Industry Cannot Predict Export Targets Of US $5 Billion

Binshall, Secretary General of the footwear industry association (BinsarMarpung), said Indonesia's footwear industry would not be able to achieve export targets of US $5 billion this year due to the lack of law and security in Indonesia.

He said: "we set the target of shoes exports for us $5 billion this year, but when we look at the current situation, we probably fail to achieve that target."

Because Indonesia's footwear industry continues to be hampered by the rule of law and security uncertainties, the production process is blocked. He predicts that Indonesia's exports of shoes will be the same as last year's US $3 billion 300 million.

He continues to say that the government will now make a decision whether it will take resolute measures or continue to let the problem continue.

He added that if the government allowed the problem to continue, it would have an impact on workers and entrepreneurs.

"We want to discuss the question of wages, but now the government does not comply with the effective regulations to raise wages," he said.

Binshall claims several foreign investments in Indonesia.

The company has asked Indonesia about wage policy.

The wage problem continued unresolved for a long time without obtaining legal certainty and causing frequent demonstrations by workers.

He said footwear companies could employ 10 thousand people for a total investment of $100 billion.

He also said that the government should further think about policies that can not protect entrepreneurs, that is, it can lead to an increasing unemployment rate.

At the same time, Anton, member of the steering committee of the Indonesian Footwear Association (AntonSupit), said that the decrease in footwear exports led to the reduction in the export volume of footwear.

Blocked, because investors do not get the clarity of the law and do not dare to operate in the country.

He said that the government's policy of not creating employment opportunities as it is now will increase unemployment.

He also asked the government the concept of "temporary operation", which has always been a high unemployment rate, and because of the closure of many factories, the unemployment rate will be higher and higher.

Earlier, the ForumKomunikasiAsosiasiNasional (FKAN) said that if the government and law enforcement officials were not able to maintain the rule of law, they would consider closing all the factories in the country.

Entrepreneurs say that the government has not taken firm security measures against the loss of domestic enterprises.

For this reason, entrepreneurs hope that the government can take clear legal steps to protect entrepreneurs.